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Comparison of Virgin Group and Ben & Jerry’s Inc

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Published: Thu, 10 Aug 2017

Strategy is considered as the scope and direction of the business organization. It is known as management’s game plan to win the business market in the changing competitive business environment. This research report is illustrating about to major companies such as; Virgin Group and Ben & Jerry’s Homemade Holdings, Inc. This report compares and contrast the Business Strategies of these two companies and their strategic capabilities for achieving and sustaining competitive advantage, further it compares both companies in other headings such as; BCG Matrix Analysis, SWOT Analysis, PESTEL Analysis, Porter’s Five Force Analysis, Ansoff Matrix, Value Creation and Branding Strategies.

BCG Analysis illustrates the Market share and market growth, which is varies to both organization, SWOT Analysis and PESTEL Analysis Illustrate the Micro and Macro Environmental conditions of both Virgin Group and Ben & Jerry and their strength and weakness from opportunities and threats from external situations. Porter’s Five Force Analysis is to logically evaluate major potential stages of opportunities, risks, threats and profitability depended on five major elements within both Virgin Group and Ben& Jerry. Ansoff Matrix to focus on the firm’s present and potential products and markets by considering ways to grow through existing products and new products, and in existing business markets and new business markets, there are possible four product-market combinations both Virgin Group and Ben& Jerry are illustrated. Further, there will be a placement these two brands in the Ansoff’s matrix during their commencement and their shift of from one quadrant to other quadrants. Both companies achieved their sustainability by achieving the triple bottom lines such as; Profit, People and Planet. Both company’s business strategy is to achieve superior profitability by proving ecofriendly products to the customers, as well it is not harmful to the environments and also company’s corporate social responsibility (CSR) illustrates the efforts for the people. These two companies value creation and sustainability strategies are illustrated separately and also this report illustrates their branding strategies as well.

Finally report illustrates the conclusion for Virgin Group and Ben & Jerry’s Homemade Holdings Inc, which illustrates recommendations and best solution are provided for upcoming future strategic decision making and covering human resources theories.

Above mentioned model is based on the Mckinsey 7S theory that, for a company / organization to perform well in the relevant business industry, these seven major essentials should need to be aligned and mutually reinforcing. Organizations are preparing their strategy to match with the competitive and changing business environment.

Every successful organizations in the business market have their efficient own strategic capability which refers to their skills and abilities via that their unique resources are deployed through their organizational activities and process to attain competitive advantage in changing business environment in such ways others cannot copy or imitate.

Organization’s Strategies’ are generated by their Vision and Objectives by analyzing internal and external analysis by formulating core competencies and critical success factors they go for strategic options then after they evaluate whether it is feasible for organization’s core competencies, acceptable to stake holders and suitable in changing environment. Then after everything is positive organization will implement it.

Virgin Group is one of the largest private organization in the United Kingdom which comprises of various types of businesses. It is popularly known to be one of the worlds most respected product brand name (Virgin) and venture capital organizations which is founded and developed by Sir Richard Branson in the year of 1970.

The Virgin Group’s rationale is to diversify into several business markets as possible, and develop the Virgin Group’s brand name and extend all over the world at a cost; where stature might be depend upon to decrease barricades to access into static markets (Bobade, 2013). It is the way in that a virgin corporate parent visualizes the technique which it can add value to its Strategic Business Units (SBU) and these SBU’s provides Technology, knowledge and resources to make their products (goods and services) in best quality.

Diversification into as several business markets feasible so as to develop the virgin group’s brand. The sacrifice of short term profits to earn long term growth. Acquiring innovative partners, pioneers in their relevant fields. Producing and delivering better quality product and services to a complacent market in virgin group’s growth phase (Grant, 2012).

The major success points behind the growth of Virgin Group could be connected to Richard Branson and its brand name and also with its exceptional organizational culture, unique management style with minimal hierarchy structure and management levels (Grant, 2012).

As per the porter’s generic strategies Virgin Group’s Major Strategy for achieving competitive advantage is their differentiation strategy to obtain superior profitability from changing competitive business environment (Bobade, 2013).

It has also contributed to the end customer’s experienced fruitful outcome. Branson’s businesses had the high level of ambition for globally expanding the firm’s business by using the brand name of the Virgin, that’s the main reason business of Virgin group did not stand still within some specific business industries but expanded enormously.

Virgin Group believes on that organization’s sustainability relies on achieving triple bottom line, which is; People, Profit and Planet. Their Products are very eco-friendly, their corporate social responsibility (CSR) is very much considering about the people. With their unique resources and distinctive capabilities, they are achieving competitive advantage from that they are gaining superior profitability.

Ben & Jerry is a leading business organization which manufactures ice cream products, frozen yogurt products, and sorbet products. It was founded by Jerry Greenfield and Ben Cohen at Burlington, Vermont, United States on 1978. Its main factory in located Waterbury, Vermont and its headquarters located in South Burlington, Vermont (Ben & Jerry, 2013)

Unilever acquires the Ben & Jerry company in 2000 with some term and conditions such as; retaining Ben & Jerry’s brand name, retaining the company’s employees for 2 years, etc. The Ben & Jerry’s CEO steps down and replaced by Yves Couette (Jordann, et al., 2015).

A Strategic Business Unit (SBU) of Unilever considers as a part of a business organization for that there is a distinct external market for its products (goods or service) which is different from another Strategic Business Unit (SBU), However, Ben & Jerry operates worldwide as a subsidiary company of the Unilever (Jordann, et al., 2015).

The Ben & Jerry’s Homemade Holdings Inc. adopted their mission statement in three parts such as; Product Mission, Social Mission and Economic Mission to formalize the company’s business philosophy (Nordin & Gregory, 2013).

Underlying this mission is the willpower to search for innovative paths of addressing all three major elements, though holding a profound respect for firm’s employees and the customers at large (Nordin & Gregory, 2013). Currently 750 scoop shops in available internationally covering more than 25 countries and employing more than 15,000 people.

An analysis of the both internal and external forces which shaping the ice cream products manufacturing industry are necessary, so as to determine the efficiency & effectiveness of Ben & Jerry company’s current and forthcoming corporate and environmental strategies (Nordin & Gregory, 2013). The firm utilizes numerous analytical tools to illustrate the internal weakness, strengths and market opportunities of the ice cream industry as well the threats, product demand, new market competitors and rivalry.

Ben & Jerry firm’s strategy strives highly to implement the three integrated missions that are illustrated in below mentioned figure: attaining economic growth, earning higher profitability, producing a supreme quality products and incorporating social activism (Marsano, 2014).

Ben & Jerry’s can deliver to their customers something they notice is very temptingly different from challenging competitors. Ben & Jerry’s super premium innovative various ice cream flavors that taste better and comprise of all fresh, natural and supreme quality ingredients (Heller, 2015).

Moreover, to differentiating its products from other ice cream competitors in the industry, Ben & Jerry’s general strategy is to combine several other important elements, including developing Ben & Berry’s image of social activism, generating awareness & brand loyalty, franchising the company to help financial growth, and promoting innovative advertising methods (Thompson & Strickland, 2006).

Their scoop shops play a significant role and they serve as a major employment resource for people and a source of income (Marsano, 2014). Furthermore, Ben & Jerry company increases its competitive advantage through several franchises by increasing revenue, expanding market share, and spreading the Ben & Jerry’s brand name with minimum amounts of startup investment (Nordin & Gregory, 2013).

Based on this research report, The Virgin Group’s rationale is to diversify into several business markets as possible, and develop the Virgin Group’s brand name and extend all over the world. virgin corporate parent visualizes the technique which it can add value to its Strategic Business Units (SBU) and these SBU’s provides Technology, knowledge and resources to make their products (goods and services) in best quality. Ben & Jerry’ company’s strategy strives to implement their major three integrated missions for attaining economic growth, earning higher profitability, producing a supreme quality products and incorporating social activism. The corporate strategy of Ben & Jerry’s can be considered as a focused or niche market strategy based primarily on quality production and focus product differentiation. Even though, Ben & Jerry’s focused differentiation strategies target a narrow customer segment, this strategy aids and supports the company to gain a strong competitive advantage over its competitors.

Virgin Group established their competitive advantage among its competitors by providing good  value and services to the endusers / customers in many different ways. Its businesses are basic and their core competence are to deliver good quality products (goods or services) in a little bit different way from their business competitors. Ben & Jerry Company has crafted their progressive values and mission statement and put maximum effort to maintain those ideals as guiding principles, with a focus on linked success and prosperity.


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